DOJ swoop nets eight execs in price-fixing cartel

CoreyBoles

WASHINGTON (MarketWatch) -- The U.S. Department of Justice, in coordination with antitrust authorities in Europe and Japan, has arrested eight executives in the marine hose market, charging them with rigging bids and fixing prices.

The wide-ranging investigation affects companies in the U.K., France, Italy, Japan and the U.S., alleging executives at the companies have been engaged in repeated attempts to control the prices in the market.

Marine hose is used by the largest oil companies to transport oil between tankers and storage facilities.

Court documents by the Department of Justice allege that the conspirators sold hundreds of millions of dollars of marine hose and related products.

"Today's arrests, combined with the raids in the U.S. and Europe, demonstrate our ability to work effectively with foreign competition authorities to shut down international cartels," said Thomas O. Barnett, assistant attorney general in charge of the department's Antitrust Division.

While none of the companies involved are household names, they are suppliers to oil majors including Royal Dutch Shell
RDS.A, -1.30%
Exxon Mobil Corp.
XOM, +0.43%
and Chevron Corp.
CVX, -0.35%

Marine hose is also used by the U.S. Department of Defense.

In total, eight executives at supplying companies have been charged.

A criminal complaint unsealed in the U.S. District Court of Miami named Peter Whittle, owner of U.K.-based consulting firm PW Consulting (Oil & Marine) Ltd.; Bryan Allison and David Brammar of the U.K.'s Dunlop Oil & Marine Ltd.; and Jacques Cognard of Trelleborg Industrie S.A. of France, a subsidiary of Sweden's Trelleborg AB (TREL-B.SK).

The Department of Justice said a separate criminal complaint was filed Tuesday night in the U.S. District Court in Fort Lauderdale, Fla., against Christian Caleca, also of Trelleborg Industrie S.A.; Vanni Scodeggio of Parker ITR of Italy; Francesco Scaglia of Italy's Manuli Rubber Industries SpA; and Misao Hioki, an executive with Bridgestone Corp.
BRDCY, -0.87%
in Japan.

None of the companies themselves have been charged.

Search warrants were executed in locations in the U.S., U.K. and Europe.

The individuals are accused of agreeing to fix prices, and rigging bids for contracts from companies. They also allegedly kept agendas and detailed minutes of cartel meetings.

Some of the conspirators are alleged to have met as recently as Tuesday to discuss the scheme.

A spokeswoman for the Department of Justice said the investigation was ongoing, but wouldn't comment as to whether there would be further arrests.

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